Barclays PE in partial exit of Converteam

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Barclays Private Equity has staged a partial exit of Converteam in what is set to be the largest buyout of the year. With a value of just under EUR2bn, LBO France has taken a third of the company alongside the management, who took the remaining third by reinvesting the entirety of the EUR500m plus-value. Barclays PE reinvested EUR300m in order to retain a third of the equity.

Barclays purchased the company, formerly called Alstom Power Conversion, from Alstom three years ago for around EUR150m. HSBC, Lehman Brothers, Natixis, Societe Generale and Royal Bank of Scotland have provided a staple financing for the deal.

Massy-based Converteam is a power conversion engineering company, that manufactures rotating machines, converters and drives for the marine, oil & gas and offshore energy industries. The company has 4,600 employees in 14 countries worldwide and recorded an 80% increase in orders in 2007, generating a turnover of EUR1.43bn.The new owners will seek to take Converteam public in the next three years.